"prime the pump" is perhaps the key phrase in all of economics. When you prime a water pump you get it started with a little water and then it runs on its own.

But, when the liberal primes the economy with federal spending it merely creates a bubble not related to or attached to the broader economy and so is not able to pull the broader economy along.

Worse, the bubble bursts causing a depression in the bubble area leaving it worse off than before, plus, the taxation necessary to finance the bubble further recesses the broader economy that was taxed to finance the bubble.

Now we can understand the futility of Keynesian "prime the pump" economics and the futility of using Obama's stimulus bubble to fix the housing bubble.

Ideally we want minimal taxation and Keynesian interference so the free market will organize the economy in the most efficient way possible.

And how many jobs would have been created had the money to fund the stimulus not been taxed away from the private sector? The argument operates under the fallacy of the broken window. It should be obvious the stimulus has failed. The Stimulus might as well have paid 3 million workers to dig holes in the ground. All these jobs do is divert resources to sectors that the government has political ties with.

And how many jobs would have been created had the money to fund the stimulus not been taxed away from the private sector?

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And how on earth could a very temporary stimulus create permanent jobs????

If I gave a company 100k to hire a guy they probably would, but what are the chances the guy would have his job when the 100k ran out. IF they could have profitably hired a guy for 100K they would have been happy to do it on their own, and on a permanent basis!! Liberalism merely panders to the pure ignorance of liberals to gain political power.

Granny says dey still ain't sent her dat second stimulus check either...More Than $125 Billion In Stimulus Funds Still Not Paid OutThursday, August 04, 2011  Billions of dollars in stimulus funds have not been paid out, according to a government Web site that tracks the $787 billion approved by Congress to fund the American Recovery and Reinvestment Act of 2009.

The distribution of those funds is detailed in the Overview of Funding section of the Recovery.gov Web site. The data, said to be valid as of July 22, shows that a total of $125.8 billion remains to be distributed in three categories of funding. In the tax benefits category, $259.9 billion of the $288 billion allotted has been paid out, leaving 28.1 billion unpaid. In the contracts, grants and loan category, of the $275 billion allotted, $217.5 billion has been paid out, leaving $60.5 billion remaining. Under entitlements, $224 billion has been paid out, with $37.2 billion yet to be distributed.

The Web says one the stated goals of the stimulus is to create new jobs and save existing ones. Almost three years after the act was passed, however, the national unemployment rate as reported by the Bureau of Labor Statistics stood at 9.2 percent in June  up from the 8.2 unemployment rate recorded in February 2009, the month the stimulus bill became law The About section of the Web site also states that in addition to helping school districts, expanding the Child Tax Credit and subsidizing the cost of creating electronic medical records, the stimulus fund is targeted at infrastructure development and enhancement.

For instance, the Act plans investment in the domestic renewable energy industry and the weatherizing of 75 percent of federal buildings as well as more than one million private homes around the country, it says. While many of Recovery Act projects are focused more immediately on jumpstarting the economy, others, especially those involving infrastructure improvements, are expected to contribute to economic growth for many years.

According to the U.S. Department of Commerce, real gross domestic product (GDP) grew by 1.3 percent in the first quarter of 2011, a result that prompted the New York Times to comment in April that the American economic expansion slowed to a crawl in the first quarter. The estimated federal budgetary spending for fiscal year 2011 is $3.83 trillion and for fiscal year 2012 it is $3.75 trillion, according to historical tables published in the Budget of the U.S. Government. In 2013, the budget is estimated to be $3.91 trillion and in 2014 it is estimated to be $4.16 trillion. The federal government currently faces a $14.29 trillion national debt, and a $1.4 trillion federal spending deficit.

Well today - I would say the most important phrase is - "it is the spending stupid".
The world held their breath for the past few weeks to see what the leading economy in the world's leaders were going to do.

And they struck out and did absolutely nothing.
This got people looking at foreign currencies...and then this opened the door to Pandora's box and everyone quickly saw that European currencies are CLEARLY not a place to hide...then bad economic indicators fell from everywhere...and people with money do what they do - they go to the safest place they know of...U.S. treasuries.

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